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Tax Paperwork Reduction: 1099 Reporting Threshold Rises to $5,000.

This law significantly raises the minimum amount businesses must report to the IRS when paying independent contractors and service providers. The reporting requirement (Form 1099) will now apply only to annual payments exceeding $5,000, up from the current $600. This change aims to reduce administrative burdens for small businesses and freelancers by cutting down on the number of tax forms they must handle.
Key points
The threshold for reporting payments to contractors (Form 1099) increases from $600 to $5,000 per year.
This change means less tax paperwork and simpler compliance for small businesses and self-employed individuals.
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Additional Information
Print number: 118_HR_3991
Sponsor: Rep. Schweikert, David [R-AZ-1]
Process start date: 2023-06-09
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Summarized by: gemini-flash-latest
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Small Business Paperwork Savings Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_3991.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2023-06-09.

What are the main provisions?

Key points include:

  • The threshold for reporting payments to contractors (Form 1099) increases from $600 to $5,000 per year.
  • This change means less tax paperwork and simpler compliance for small businesses and self-employed individuals.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Schweikert, David [R-AZ-1].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-30.

CATEGORIES

Taxes Economy